Denmark faces $200m hit & industry ‘decimation’, as streamer stand-off persists

Borgen

Denmark’s production industry is bracing itself for losses of up to €200m ($200m) as the stalemate over rights payments from streamers continues.

The stand-off between streamers including Disney+, Viaplay, Amazon Prime Video, TV2 Play and Netflix, among others, has been ongoing since January, causing more than 50 titles to be stopped at either development or production stage.

Actor and director union Create Denmark and the Danish Producers Association had initially put forward a new raft of proposals around rights payments, which were swiftly refused by commissioners.

Discussions rumbled on during the Spring and discussions with Viaplay over the summer had seen production resuming on some shows, but the issue remains unresolved, with local producers now warning of “decimation” for the industry if a solution is not found.

Compound interest

In an open letter, leading local firms including Borgen producer SAM Productions, Miso Film, Apple Tree Productions, Nordisk Film, SF Studios and Tall & Small said 2022 had been “the worst” year ever for producers, adding that 2023 “might be even worse.”

They added: “From being one of the most productive and leading countries within development and production of quality series and films to both streaming services and broadcasters, we have now come to a full stop.”

Streamers, which have halted almost all new development and production of series and films since January, have also been hit by a new 6% streaming levy from the Danish government, leading to further disquiet.

The producers urged action to come up with new models, admitting that the previous rights payment proposals – which have now been thrown out by both sides – were “extremely expensive” for streamers.

“That we now, nine months into the year still have no solution is not just a financial disaster, but also an irresponsible behaviour towards the Danish film industry as a whole. The positive momentum from before the conflict has been lost.”

$200m hit

Netflix, Denmark’s TV2, Viaplay, HBO Max and the other streamers contribute around DKK1bn ($140m) annually, said the producers, and failure to strike a new agreement would cause until d damage to the industry.

“Best case is that it will take years to regain that momentum from the day a solution is in place. The total loss will therefore as a minimum reach DKK1bn-1.5bn,” the producers continued, adding it would “bankruptcies, firings, unemployment and a film industry that is knocked back several years.”

They urged “compromise… so we can move on and recover,” underlining that as producers they “are not parties” to the deal between Create Denmark and the streamers.

“Our only wish is therefore that agreements are reached which are financially balanced and sustainable for both the creatives and the streaming services. Without agreements, no production. No production, no jobs. No jobs, no rights payments.

“The long-term consequences, if this situation continues, may be more serious than any of us wish to see. A decimation of half of the industry is not unrealistic. And this at a time, where we, together, were growing more than ever. The damage is done. The consequences are already bad enough, and we have not even seen their full extent yet.”